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On Assignment Announces Two Acquisitions, Sale Of Its Allied Healthcare Unit And Updated Q4 Estimates

Certain statements made in this news release are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and involve a high degree of risk and uncertainty. Forward-looking statements include statements regarding the Company’s anticipated financial and operating performance in 2013. All statements in this release, other than those setting forth strictly historical information, are forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results might differ materially. In particular, the Company makes no assurances that the estimates (including pro forma) of revenues, gross margin, SG&A, Adjusted EBITDA, income from continuing operations, adjusted income from continuing operations, earnings per share or earnings per diluted share set forth above will be achieved. Factors that could cause or contribute to such differences include actual demand for our services, our ability to attract, train and retain qualified staffing consultants, our ability to remain competitive in obtaining and retaining temporary staffing clients, the availability of qualified temporary professionals, management of our growth, continued performance of our enterprise-wide information systems, the integration and operation of our acquired businesses, and other risks detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC on March 18, 2013, our report on Form 8-K filed with the SEC on June 13, 2013, and our Forms 10-Q for the quarterly periods ended March 31, 2013, June 30, 2013 and September 30, 2013 as filed with the SEC on May 9, 2013, August 2, 2013, and November 5, 2013, respectively. We specifically disclaim any intention or duty to update any forward-looking statements contained in this news release.

ON ASSIGNMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

FOR EACH OF THE THREE-MONTH PERIODS IN THE NINE MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

(in thousands, except per share amounts)

Three Months Ended

Mar. 31

June 30

Sept. 30

Revenues

$

379,044

$

407,864

$

421,491

Cost of services

268,933

286,532

294,281

Gross profit

110,111

121,332

127,210

Selling, general and administrative expenses

81,877

84,282

86,329

Amortization of intangible assets

5,379

5,275

5,199

Operating income

22,855

31,775

35,682

Interest expense

(5,096

)

(4,081

)

(3,257

)

Write-off of deferred loan costs

-

(14,958

)

-

Income from continuing operations before income taxes

17,759

12,736

32,425

Provision for income taxes

7,543

5,493

12,954

Net income from continuing operations

10,216

7,243

19,471

Gain on sale of discontinued operations, net of tax

14,412

-

-

Income (loss) from discontinued operations, net of tax

(15

)

96

679

Net Income

$

24,613

$

7,339

$

20,150

Basic earnings per common share:

Income from continuing operations

$

0.19

$

0.14

$

0.36

Income from discontinued operations

0.27

-

0.02

Net Income

$

0.46

$

0.14

$

0.38

Diluted earnings per common share:

Income from continuing operations

$

0.19

$

0.13

$

0.36

Income from discontinued operations

0.27

0.01

0.01

Net Income

$

0.46

$

0.14

$

0.37

Number of shares and share equivalents used to calculate earnings per share:

Basic

53,046

53,378

53,620

Diluted

54,036

54,327

54,624

Reconciliation of net income to comprehensive income:

Net income

$

24,613

$

7,339

$

20,150

Changes in fair value of derivative, net

67

76

29

Foreign currency translation adjustment

(1,259

)

403

1,504

Comprehensive income

$

23,421

$

7,818

$

21,683

ON ASSIGNMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

FOR EACH OF THE THREE-MONTH PERIODS IN THE YEAR ENDED DECEMBER 31, 2012 (UNAUDITED) AND

THE YEAR ENDED DECEMBER 31, 2012

(in thousands, except per share amounts)

Three Months Ended

Year Ended

Mar. 31

June 30

Sept. 30

Dec. 31

Dec. 31

Revenues

$

148,277

$

256,386

$

363,882

$

369,441

$

1,137,986

Cost of services

98,160

174,877

251,669

257,387

782,093

Gross profit

50,117

81,509

112,213

112,054

355,893

Selling, general and administrative expenses

40,530

63,063

75,184

77,919

256,696

Amortization of intangible assets

634

3,884

6,679

6,819

18,016

Operating income

8,953

14,562

30,350

27,316

81,181

Interest expense

(701

)

(3,840

)

(5,787

)

(5,440

)

(15,768

)

Write-off of deferred loan costs

-

(813

)

-

-

(813

)

Income from continuing operations before income taxes

8,252

9,909

24,563

21,876

64,600

Provision for income taxes

3,461

4,323

10,485

9,872

28,141

Net income from continuing operations

4,791

5,586

14,078

12,004

36,459

Income from discontinued operations, net of tax

592

1,976

1,425

2,201

6,194

Net Income

$

5,383

$

7,562

$

15,503

$

14,205

$

42,653

Basic earnings per common share:

Income from continuing operations

$

0.13

$

0.12

$

0.27

$

0.23

$

0.78

Income from discontinued operations

0.01

0.05

0.03

0.04

0.13

Net Income

$

0.14

$

0.17

$

0.30

$

0.27

$

0.91

Diluted earnings per common share:

Income from continuing operations

$

0.13

$

0.12

$

0.26

$

0.22

$

0.76

Income from discontinued operations

0.01

0.04

0.03

0.04

0.13

Net Income

$

0.14

$

0.16

$

0.29

$

0.26

$

0.89

Number of shares and share equivalents used to calculate earnings per share: